Honeywell (NYSE:HON) reported second-quarter earnings that beat expectations and raised its full-year guidance following strong sales at its commercial aerospace, process solutions and UOP divisions.
The Charlotte, North Carolina-based industrials company also noted that its backlog has risen 4% to a record $30.5 billion.
Sales rose 2% year-over-year to $9.1 billion for the three months to June 30, 2023, with organic growth of 3%. Aerospace reported a 15% rise in sales (16% in organic sales), led by over 20% growth in commercial aviation.
Adjusted earnings per share (EPS) increased by 6.2% to $2.23, beating analysts’ consensus estimates of $2.20.
"Honeywell performed exceptionally well in the second quarter, meeting or exceeding guidance for all metrics,” President and CEO Vimal Kapur said in a statement.
"Organic sales growth was underpinned by double-digit growth in our commercial aerospace, process solutions, and UOP businesses. This marked the ninth consecutive quarter of double-digit growth in commercial aerospace, and strength in our overall Aerospace portfolio continues to support Honeywell's short-term and long-term growth outlook.”
The company now expects full-year sales of between $36.7 billion and $37.3 billion, with organic sales growth in the region of 4% to 6%.
Adjusted EPS is likely to be in the range of $9.05 to $9.25, up 5 cents on the low end from its prior guidance range.
The company’s shares fell 1.6% to $205 in pre-market trading.
Contact the author at stephen.gunnion@proactiveinvestors.com